Black Wednesday

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DEFINITION of 'Black Wednesday'

The day when the British government was forced to withdraw the pound from the European Exchange Rate Mechanism. The date of the Black Wednesday crash was September 16, 1992, and five years later the UK Treasury estimated that the loss from that day was around £3.14 billion.

INVESTOPEDIA EXPLAINS 'Black Wednesday'

September 16, 1992, is also known as the day that George Soros broke the Bank of England. It has been reported that he made a $1 billion profit that day, which cemented his reputation as one of the greatest forex traders who has ever lived.